(VERX) Vertex - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 2.160m USD | Total Return: -68.6% in 12m
Avg Turnover: 18.5M
EPS Trend: 84.4%
Qual. Beats: 0
Rev. Trend: 99.7%
Qual. Beats: 1
Warnings
Interest Coverage Ratio -0.1 is critical
Altman Z'' -0.29 < 1.0 - financial distress zone
Choppy Below Avwap Earnings
Tailwinds
Confidence
Vertex, Inc. (VERX) provides enterprise tax technology solutions designed to automate transaction tax processes for retail, wholesale, and manufacturing sectors. The company’s core offerings include tax determination, compliance reporting, and data management, delivered primarily through a Software-as-a-Service (SaaS) subscription model and traditional software licensing.
The business model leverages high switching costs and regulatory complexity, as indirect tax laws frequently change across thousands of global jurisdictions. By integrating directly with enterprise resource planning (ERP) systems like SAP, Vertex automates the calculation and filing of sales, use, and value-added taxes (VAT) to reduce audit risk for multinational corporations.
Vertex also offers managed services and e-invoicing solutions to streamline end-to-end tax workflows. To understand the underlying valuation metrics of this software provider, you may find ValueRays quantitative analysis useful. Headquartered in Pennsylvania, the company maintains strategic partnerships to support specialized digital transformation projects for its global client base.
- Accelerated migration to SaaS subscriptions drives recurring revenue and margin expansion
- Global e-invoicing mandates increase demand for automated compliance and reporting tools
- Strategic SAP partnership strengthens market share within enterprise resource planning ecosystems
- Indirect tax complexity across jurisdictions fuels demand for automated tax determination software
- Expansion into international markets increases operational costs and exposure to global regulation
| Net Income: -6.43m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 3.39 > 1.0 |
| NWC/Revenue: -10.16% < 20% (prev -1.19%; Δ -8.98% < -1%) |
| CFO/TA 0.16 > 3% & CFO 193.0m > Net Income -6.43m |
| Net Debt (109.8m) to EBITDA (80.0m): 1.37 < 3 |
| Current Ratio: 0.86 > 1.5 & < 3 |
| Outstanding Shares: last quarter (175.1m) vs 12m ago 10.11% < -2% |
| Gross Margin: 62.30% > 18% (prev 64.53%; Δ -2.22% > 0.5%) |
| Asset Turnover: 64.85% > 50% (prev 59.53%; Δ 5.32% > 0%) |
| Interest Coverage Ratio: -0.06 > 6 (EBIT TTM -326k / Interest Expense TTM 5.25m) |
| A: -0.06 (Total Current Assets 488.5m - Total Current Liabilities 566.6m) / Total Assets 1.21b |
| B: -0.04 (Retained Earnings -48.6m / Total Assets 1.21b) |
| C: -0.00 (EBIT TTM -326k / Avg Total Assets 1.18b) |
| D: 0.25 (Book Value of Equity 246.5m / Total Liabilities 967.9m) |
| Altman-Z'' = -0.29 = B |
| DSRI: 0.93 (Receivables 159.0m/152.3m, Revenue 768.0m/687.1m) |
| GMI: 1.04 (GM 64.53% / 62.30%) |
| AQI: 1.04 (AQ_t 0.41 / AQ_t-1 0.39) |
| SGI: 1.12 (Revenue 768.0m / 687.1m) |
| TATA: -0.16 (NI -6.43m - CFO 193.0m) / TA 1.21b) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of June 07, 2026, the stock is trading at USD 13.16 with a total of 1,061,082 shares traded.
Over the past week, the price has changed by -1.42%,
over one month by -3.52%,
over three months by -15.59% and
over the past year by -68.57%.
Vertex has received a consensus analysts rating of 3.93. Therefore, it is recommended to buy VERX.
- StrongBuy: 4
- Buy: 6
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 18.5 | 40.9% |
P/S = 2.8127
P/B = 8.7701
Revenue TTM = 768.0m USD
EBIT TTM = -326k USD
EBITDA TTM = 80.0m USD
Long Term Debt = 338.0m USD (from longTermDebt, last quarter)
Short Term Debt = 4.37m USD (from shortTermDebt, last quarter)
Debt = 362.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 12.1m
Net Debt = 109.8m USD (calculated: Debt 362.2m - CCE 252.5m)
Enterprise Value = 2.27b USD (2.16b + Debt 362.2m - CCE 252.5m)
Interest Coverage Ratio = -0.06 (Ebit TTM -326k / Interest Expense TTM 5.25m)
EV/FCF = 22.88x (Enterprise Value 2.27b / FCF TTM 99.2m)
FCF Yield = 4.37% (FCF TTM 99.2m / Enterprise Value 2.27b)
FCF Margin = 12.92% (FCF TTM 99.2m / Revenue TTM 768.0m)
Net Margin = -0.84% (Net Income TTM -6.43m / Revenue TTM 768.0m)
Gross Margin = 62.30% ((Revenue TTM 768.0m - Cost of Revenue TTM 289.5m) / Revenue TTM)
Gross Margin QoQ = 59.43% (prev 61.18%)
Tobins Q-Ratio = 1.87 (Enterprise Value 2.27b / Total Assets 1.21b)
Interest Expense / Debt = 1.45% (Interest Expense 5.25m / Debt 362.2m)
Taxrate = 4.86% (368k / 7.58m)
NOPAT = -310k (EBIT -326k * (1 - 4.86%)) [loss with tax shield]
Current Ratio = 0.86 (Total Current Assets 488.5m / Total Current Liabilities 566.6m)
Debt / Equity = 1.47 (Debt 362.2m / totalStockholderEquity, last quarter 246.5m)
Debt / EBITDA = 1.37 (Net Debt 109.8m / EBITDA 80.0m)
Debt / FCF = 1.11 (Net Debt 109.8m / FCF TTM 99.2m)
Total Stockholder Equity = 254.5m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.54% (Net Income -6.43m / Total Assets 1.21b)
RoE = -2.53% (Net Income TTM -6.43m / Total Stockholder Equity 254.5m)
RoCE = -0.06% (EBIT -326k / Capital Employed (Equity 254.5m + L.T.Debt 338.0m))
RoIC = -0.05% (negative operating profit) (NOPAT -310k / Invested Capital 613.8m)
WACC = 8.06% (E(2.16b)/V(2.52b) * Re(9.18%) + D(362.2m)/V(2.52b) * Rd(1.45%) * (1-Tc(0.05)))
Discount Rate = 9.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 13.80 | Cagr: 2.31%
[DCF] Terminal Value 77.97% ; FCFF base≈81.6m ; Y1≈93.5m ; Y5≈137.6m
[DCF] Fair Price = 24.62 (EV 2.07b - Net Debt 109.8m = Equity 1.96b / Shares 79.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 84.41 | EPS CAGR: 24.16% | SUE: 0.35 | # QB: 0
Revenue Correlation: 99.67 | Revenue CAGR: 14.74% | SUE: 1.14 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.19 | Chg30d=+9.82% | Revisions=+75% | Analysts=14
EPS next Quarter (2026-09-30): EPS=0.22 | Chg30d=+8.80% | Revisions=+65% | Analysts=14
EPS current Year (2026-12-31): EPS=0.80 | Chg30d=+8.75% | Revisions=+78% | GrowthEPS=+25.3% | GrowthRev=+10.5%
EPS next Year (2027-12-31): EPS=1.03 | Chg30d=+16.74% | Revisions=+76% | GrowthEPS=+28.1% | GrowthRev=+11.2%
[Analyst] Revisions Ratio: +78%